DXC Technology is the spin-off of Hewlett Packard Enterprise's enterprise services business referred to as Everett SpinCo and the immediate merger between said spin-off and Computer Sciences. The company is a leading provider of technology consulting, outsourcing and support services for infrastructure, applications and business process domains, including strategic enterprise service offerings of cloud, security, analytics, and data management.
DXC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for DXC Technology Co. To summarize, we found that DXC Technology Co ranked in the 80th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 563% on a DCF basis. The most interesting components of our discounted cash flow analysis for DXC Technology Co ended up being:
27% of the company's capital comes from equity, which is greater than just 10.95% of stocks in our cash flow based forecasting set.
DXC Technology Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -13.25. This coverage rate is greater than that of merely 7.38% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, DXC Technology Co experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than only 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NEWR, PRTS, AMKR, QCCO, and WEX can be thought of as valuation peers to DXC, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
When stock market sell-off pressures accelerate, companies that are slow to turnaround their prospects fall hard. Such declines may prove more fatal to a portfolio compared to strong companies that drop. DXC Technology Company (DXC) is one of many beaten-up companies whose prospects need more time to play out. When...
NEW YORK & TYSONS, Va.--(BUSINESS WIRE)--Veritas Capital, a leading investor in government and healthcare technology businesses, today announced Gainwell Technologies as the new name of the U.S. State & Local Health and Human Services business it plans to acquire from DXC Technology (NYSE: DXC). Veritas and DXC expect to close this transaction, which was previously announced on March 10, 2020, on October 1, 2020. The name Gainwell signals a commitment to improving client, beneficiary and co